{"id":28466,"date":"2017-12-01T07:20:59","date_gmt":"2017-12-01T12:20:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=28466"},"modified":"2017-12-01T07:20:59","modified_gmt":"2017-12-01T12:20:59","slug":"inflation-surges-as-economy-bogs-down-in-mexico","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=28466","title":{"rendered":"Inflation Surges as Economy Bogs Down in Mexico"},"content":{"rendered":"
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Inflation Surges as Economy Bogs Down in Mexico<\/a><\/h3>\n

Bank of Mexico caught in a vise.<\/strong><\/p>\n<\/header>\n

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In the last week, the governor of the Bank of Mexico (or Banxico), Augustin Carstens, stepped down in order to take over the reins as general manager of the Bank for International Settlements in Basil, Switzerland, while Finance Minister Jos\u00e9 Antonio Meade, handed in his resignation to run as the presidential candidate for the governing PRI party in next year\u2019s general elections.<\/p>\n

Despite the fact that the country\u2019s two most senior public financial officials have left their posts within days of one another,\u00a0and though the Mexican stock index is down about 9% from July, the markets still seem pretty sanguine.<\/p>\n

But that doesn\u2019t mean that problems are not stacking up.<\/p>\n

Earlier this year Carstens felt compelled to postpone by five months his departure from Banxico, which was initially scheduled for May, in the hope that his continued presence would help steady investor nerves as well as tame inflation, which began soaring after the government\u2019s one-off hike in gas prices at the beginning of this year.<\/p>\n

It didn\u2019t quite work out that way. Despite the Bank of Mexico\u2019s policy rate of 7%, consumer prices in Mexico hit a higher-than-expected annual rate of 6.6% in the first two weeks of November. \u201cObviously, the final photo of my mandate isn\u2019t the best,\u201d Mr Carstens told the FT.<\/a><\/p>\n

\"\"<\/p>\n

While inflation has surged, economic growth remains sluggish compared with many other countries, including Mexico\u2019s direct neighbor to the north. Banxico is forecasting growth this year of 1.8% to 2.3%. But even that may end up proving to be optimistic after it was revealed this week that third-quarter gross domestic product had shrunk by 0.3% compared with the previous quarter, as manufacturing declined more than expected. It was the first quarter-to-quarter GDP contraction since Q4 2015.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Inflation Surges as Economy Bogs Down in Mexico Bank of Mexico caught in a vise. In the last week, the governor of the Bank of Mexico (or Banxico), Augustin Carstens, stepped down in order to take over the reins as general manager of the Bank for International Settlements in Basil, Switzerland, while Finance Minister Jos\u00e9 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[17295,5660,426,517,4255],"class_list":["post-28466","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-mexico","tag-don-quijones","tag-inflation","tag-mexico","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28466"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28466\/revisions"}],"predecessor-version":[{"id":28467,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28466\/revisions\/28467"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}